SEC Clears Fuse Crypto, Says Token Isn’t a Security

In a notable regulatory development, the U.S. Securities and Exchange Commission (SEC) has issued a no-action letter to Fuse Crypto, a Solana-based decentralized physical infrastructure network (dePIN) project. This letter confirms that the agency does not view Fuse’s native token as a security, primarily due to its utility-driven use case rather than speculative investment characteristics.

A no-action letter is a significant step that suggests the SEC has no plans to pursue enforcement action against the project, giving Fuse Crypto a strong layer of legal reassurance. This is especially meaningful in today’s uncertain crypto regulatory climate, where many projects face scrutiny over whether their tokens are investment contracts under the Howey Test.

Utility Over Profit: The SEC’s Reasoning

According to the SEC, Fuse Crypto’s token holds its value through utility within the ecosystem—such as accessing services and powering infrastructure—rather than through profit expectations from third-party efforts. The project’s focus on decentralizing real-world infrastructure, including energy grids and wireless networks, played a key role in the agency’s decision.

This distinction sets a precedent for other dePIN projects and utility token models looking for regulatory clarity. It also reinforces the growing understanding that not all crypto tokens are speculative assets.

Positive Signal for Solana and Web3 Infrastructure

Fuse Crypto’s success may pave the way for more Solana-based and Web3 infrastructure projects to seek similar clarity. As regulators increasingly engage with projects, clarity like this helps reduce legal uncertainty for developers and investors alike.

The SEC’s decision offers hope that functional crypto projects can operate within legal frameworks while fostering innovation and decentralization.